Suppose a person calculates his permanent income by adaptive expectations.Last year's permanent income was 54,000,this year's actual income is 44,000,j = 0.20,and k = 0.82.What is his consumption expenditure this year?
A)34,840
B)43,472
C)36,784
D)42,640
E)37,720

Question

Quizplus · Accepted Answer

The Answer of Suppose a person calculates his permanent income by adaptive expectations.Last year's permanent income was 54,000,this year's actual income is 44,000,j = 0.20,and k = 0.82.What is his consumption expenditure this year?
A)34,840
B)43,472
C)36,784
D)42,640
E)37,720

Suppose a Person Calculates His Permanent Income by Adaptive Expectations